Paulson Event Fund Said to Plunge 14% in October

Paulson's event-driven hedge fund experienced a 14% decline last month, resulting in a 25% loss for the year. The fund, which focuses on companies involved in takeovers, spinoffs, or bankruptcies, faced significant challenges. Investments in Shire and preferred shares of Fannie Mae and Freddie Mac saw major declines. The Treasury's inversion rules further impacted the fund's strategy.

What was the percentage decline of Paulson's hedge fund last month?

• 10%

• 14%

• 25%

• 20%

Which company's merger termination significantly affected Paulson's investment?

• Fannie Mae

• Shire

• Freddie Mac

• Abby

What type of shares in Fannie Mae and Freddie Mac did Paulson invest in?

• Preferred shares

• Options

• Convertible bonds

• Common shares

What is the primary focus of Paulson's event-driven funds?

• Companies involved in takeovers, spinoffs, or bankruptcies

• Real estate investments

• Short-term trading

• Long-term growth

What recent rules affected the performance of Paulson's event-driven funds?

• Environmental policies

• New tax regulations

• Inversion rules by the Treasury

• Interest rate changes